CHO Responds to Proposed Government Task Force on Motor Insurance Cost

Commenting on the Government’s proposed Taskforce, which will investigate the rising cost of motor insurance,  Anthony Hughes, Chair and CEO of the Credit Hire Organisation (CHO), which represents companies providing mobility following an accident, said:

“It’s odd that the members of the taskforce investigating the high cost of motor insurance include motor insurers. Labour made clear their intention to look at  this issue before the election, so it’s no surprise that the new government has honoured its commitment, but if the industry investigates itself how do you avoid the outcome being skewed?”

“The CHO looks after nearly 500,000 people a year who need a car to get to work, or take their kids to school, following an accident. The cost of providing that service was calculated by the CMA to have been less than £5 on the cost of a motor insurance policy, which shows that we are a very small part of the overall indemnity spend.”

“Additionally, for the last 12 months we’ve been engaged in productive negotiations with our insurer counterparts to revise the GTA (a protocol which seeks to reduce friction in the credit hire claims process) and we are hopeful that we will agree a revised GTA that will equip the industry to process claims efficiently in a volatile and ever-changing market.”